The following method does not result in sharing of an exchange risk between importer and exporter

Related MCQs

• Derivatives can be used by an exporter for managing
• The __________ refers to the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries.
• Agreement to exchange one currency for another at a specified exchange rate and date is
• _______________ is a process of taking advantage of differentials in interest rates of two currencies while eliminating exchange risk.
• Which exchange rate theory focuses on the inflation – exchange rate relationship?
• Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as
• Difference between buying and selling rates in an exchange rate or interest rate quotation is known as
• The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of payment
• The __________ is especially well suited to offer hedging protection against transactions risk exposure.
• Guarantee provided by MIGA to private investors covers risk of